Minimum Wage

2018 Minimum Wage and Morgan Hill

For employees and businesses in Morgan Hill there is no local ordinance for minimum wage. Minimum wage in Morgan Hill is based upon the State of California minimum wage. Information on the State of California Minimum wage can be found at:https://www.dir.ca.gov/dlse/faq_minimumwage.htm

Date

Minimum Wage for Employers with 25 Employees or Less

Minimum Wage for Employers with 26 Employees or More

January 1, 2018

$10.50/hour

$11.00/hour

January 1, 2019

$11.00/hour

$12.00/hour

January 1, 2020

$12.00/hour

$13.00/hour

January 1, 2021

$13.00/hour

$14.00/hour

January 1, 2022

$14.00/hour

$15.00/hour

January 1, 2023

$15.00/hour

Historical Information

Throughout the South Bay and beyond, cities are taking steps to initiate new local minimum wages, which would reach $15 an hour by 2018. The City of Morgan Hill was studying the possibility of a local minimum wage ordinance as well.

The City of Morgan Hill reached out to the local business community and individuals living and/or working in Morgan Hill to gather input on potential minimum wage considerations important to the community. Two forums were held to publicly discuss minimum wage issues and concerns with local business owners and the broader community. Notes from Community ForumNotes from Business Forum

Thank you to all who participated in this informative process. Over 600 participants provided meaningful information to help inform City Council. Your feedback and input is important to us. Results of the outreach and engagement process was reported to City Council at the December 16, 2015 Council Meeting.

At the March 2, 2016 Council meeting staff presented an update on the regional efforts taking place as well as an update on a study commissioned by the City of San Jose to analyze the impact of a regional minimum wage. Direction from Council was to draft an ordinance calling for the California Minimum Wage be inflated using the National Consumer Price Index. Staff will be coming back to Council in the Mid-Spring 2016.

May 2016 Update

At the May 18, 2016 City Council meeting staff will provide an update on the regional efforts on minimum wage as well as share findings from a recent regional study commissioned by the City of San Jose on the impact of raising the minimum wage. Council directed staff to return with an ordinance to increase the State of California minimum wage by the National Consumer Price Index annually. Staff is recommending not to move forward with an local ordinance based upon the recent signing of SB 3 Minimum Wage which will increase the State Minimum Wage over the next few years.

June 2016 Update

At the May 18, 2016, City Council advised Mayor Tate, Morgan Hill's local representative to the Cities Association of Santa Clara County to support a regional approach to minimum wage. At the June 6, 2016 Cities Association meeting, the board approved a recommendation to implement a Santa Clara County minimum wage phased as follows:
1/1/2017 $12.00/hr
1/1/2018 $13.50/hr
1/1/2019 $15.00/hr

Page 4 of the minutes from the Cities Association meeting can be accessed at www.citiesassociation.org which outlines in detail the approved recommendation for a regional minimum wage.

July 2016 Update

Based upon the Cities Association recommendation for a regional minimum wage, Morgan Hill staff are seeking clarifying direction from City Council on adopting a minimum wage ordinance based upon the Cities Association recommendation. It is anticipated that City Council will discuss the direction on a local minimum wage at the August 24, 2016 City Council meeting at 7:00 pm.

Morgan Hill staff are holding informational meetings to share with the community a proposed ordinance (based upon the Cities Association recommendation) and include any feedback from the community in the staff report to City Council.

Community Meeting #1

July 26, 2016 at the Community and Cultural Center in the Machado Room from 8:30 am to 10:00 am.

Community Meeting #2

July 28, 2016 at the Community and Cultural Center in the Poppy Jasper Room from 6:00 pm to 7:30 pm.

Community Meeting #3

August 10, 2016 at the Community and Cultural Center in the Machado Room from 8:30 am to 10:00 am.

Community Meeting #4

August 10, 2016 at the Community and Cultural Center in the Machado Room from 4:00 pm to 5:00 pm.

Community Meeting #5

August 18, 2016 at the Community and Cultural Center in the Machado Room from 8:30 am to 10:00 am.

Community Meeting #6

August 18, 2016 at the Community and Cultural Center in the Poppy Jasper Room from 3:30 pm to 5:00 pm.

At the August 24th Council meeting, City Council accepted staff's report on the minimum wage. Council did not provide any direction to staff for follow up at the meeting. Therefore, the City of Morgan Hill will not be moving forward with a regional approach to minimum wage at the present time.